A Wage Increase Creates a Substitution Effect Which Leads the Worker

question 25

Multiple Choice

A wage increase creates a substitution effect which leads the worker to desire ________ leisure,and an income effect which leads the worker to desire ________ leisure.

• A) more; less
• B) less; more
• C) less; less
• D) more; more

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Definitions:

Goldfish

A small freshwater fish commonly kept as a pet in aquariums, known for its variety of colors and breeds.

Robot

A machine capable of performing a complex series of actions automatically, especially one programmable by a computer.

Syllogistic Steps

The procedural steps involved in forming or analyzing a syllogism, which is a form of reasoning involving two premises and a conclusion.

Objective

Relating to or denoting a way of judging or interpreting that is based on observable phenomena and uninfluenced by emotions or personal prejudices.